Summary—This paper introduces a social perspective of interorganizational relationship to study the advertising principal-agent relationship and highlight prevailing and increasing importance of stability of advertising relationship. Empirical longitudinal analysis use survey data of international advertising principal-agent relationship collected by perceptions of foreign subsidiaries of MNEs to conduct the empirical event history study. The perceived dyadic relation including perceived uncertainty, communication atmosphere, reputation effect as well as mutual interaction in forms of coordination, adaptation, and interdependence might exert influences on the termination or sustain of dyadic business relationship. The results suggested mutual interdependence, perceptual communication atmosphere, and reputation effects can significantly help to develop a more stable interorganizational relationship.
